Big ticket buys to boost Tatas global revenues

Written by Corporate Bureau | Mumbai, Sep 27 | Updated: Sep 28 2007, 05:48am hrs
Big ticket international investments like the $12.9 billion buy of Anglo Dutch steel company Corus and the $1.3 billion acquisition of a 30% stake in PT Bumi Resources of Indonesia will increase Tata group's revenues from international operations to more than half its overall group turnover.

Speaking at a panel discussion on India-UK trade relationships, the top brass of the Tata group that included chairman Ratan Tata, Tata Sons executive director Alan Rosling, Tata Motors managing director Ravi Kant, TCS managing director S Ramadorai and Tata Chemicals managing director Homi Khusrokhan, Tata said, "We have definitely awakened to the fact that we cannot afford to be India-centric. However, we are investing more in India than overseas. Our growth is still more domestic oriented. We are not obsessed with acquisitions."

With Corus under its belt, the group's turnover is estimated to touch around $35 billion, of which around $17-18 billion would be from international operations by 2008. The group's current revenues stand at $29 billion, approximately 3.2% of the country's GDP. The company's revenues from international operations touched 37% last year.

Last year, the US was the largest contributor to the total overseas revenues. Thanks to Corus, UK will displace US to bag the number one slot in 2008, contributing to more than 25% of the total share, said Rosling.

With substantial investments in the UK routed through Tata Steel, Tata Tea, Tata Chemicals and TCS, the group is now looking very seriously at what it can do to enhance its brand value and make it more visible in the UK markets, informed Tata.

Speaking on the process of integrating Corus with Tata Steel, Tata said, The Tata name will be added to Corus in due course of time.